British Horseracing Authority chief executive, Paul Bittar, said the Chancellor had produced a Budget that “represents a major milestone in our efforts to secure the future finances of our industry.”

“Today’s commitment brings us considerably closer to securing the future prosperity of one of the country’s leading sports, and a major employer across the country”

Paul Bittar

He added: “Today’s commitment brings us considerably closer to securing the future prosperity of one of the country’s leading sports, and a major employer across the country.”

Osborne announced there would be consultation later this year on Levy reform and, as a result, long overdue reforms to the financing of racing, which is worth £3.45 billion a year to the British economy.

After Tuesday’s debate on the Gambling Bill, which passed its third reading in the House of Lords, an amendment will be added allowing the secretary of state powers to extend the Levy to offshore bookmakers.

This would save the industry more than £20 million a year in lost levy revenue.

Richard Wayman, chief executive of the Racehorse Owners Association believes reforms can help bring more owners into the sport.